Live markets, Tuesday, May 25, 2021
Fintech Plenti this morning reported a huge increase in auto loans at the end of 2020, resulting in a 64% increase in loan origination over a full year.
Auto loans jumped 301% to $ 231 million in the year ending March 31, from $ 58 million the year before.
Renewable energy loans rose 33% to $ 57 million, but personal loans edged down to $ 182 million “as Plenti deliberately tightened credit standards and cut associated marketing expenses over the years. early stages of the COVID-19 pandemic, ”the company told shareholders.
The total loan portfolio now stood at $ 615 million, with auto loans accounting for 14% and personal and renewable energy loans both 43%.
Arrears over 90 days decreased as a percentage of total loans from 0.36% to 0.31% of the portfolio, but increased in dollars from $ 1.6 million to $ 2.2 million.
Overall, Plenti loaned $ 470 million in 2020-21 and saw its revenue increase to $ 53.1 million, but reported an after-tax loss of $ 6.8.
“Plenti’s goal is to create Australia’s best lender, delivering faster, fairer lending through smart technology,” CEO and founder Daniel Foggo told the market.
“We have reached a tipping point in both scale and growth and are now taking significant market share in each of our major credit verticals.”
The company is targeting a $ 1 billion loan portfolio by March 2022 and hopes to be profitable by June 2022.
“Plenti has continued to perform well since the start of 2021-2022, with our loan portfolio growing by more than 10% to $ 685 million since the start of April, supporting the achievement of our loan portfolio priority. $ 1 billion, ”Foggo added.
Plenti was founded in 2014 and was previously called Ratesetter. It listed on the ASX at $ 1.66 in late 2020 amid controversy over the contracts it won with the Clean Energy Finance Corporation.
Shares are down 0.8 percent to $ 1.20 this morning.
Mr Foggo still owns 21% of Plenti through the Westbourne Trust, and carsales.com is the second largest shareholder with 6.3% of the shares.